Principia Now Offering a Comprehensive Solution for SOFR Derivatives

New York, NY – March 25, 2019 - Principia Partners LLC, an industry-leading provider of derivatives portfolio management solutions, today announced the full integration of SOFR into their platform, Principia SFP, and the online derivatives valuation service powered by it, pasVal.

“We are proud to be well ahead of the market in offering a complete, easy-to-use SOFR solution via the Principia platform and our online valuation service, pasVal. Our clients are eager to embrace this alternative reference rate and we’ve delivered them everything they need to do so,” said Theresa Adams, Principia’s President & CEO.

As part of their solution, Principia now supports the full spectrum of structuring complexity and differing market conventions developing between the SOFR debt and SOFR swap markets. This includes supporting standard valuations, hedge effectiveness testing and SOFR curve construction, but also addresses market nuances such as whether you use a prior or subsequent reset for accruals on non-business days, or if you can exclude spreads from compounding calculations, as well as how you manage the accrual calculations at the end of the period when SOFR won’t be published until the following business day.

“Many of our clients are issuing both SOFR debt and gearing up to hedge with SOFR swaps as opposed to LIBOR. While market conventions around SOFR are not fully set, over the course of the transition they will need to be able to capture all the variations that come about. We’re proud that they have confidence in Principia to handle the complicated transition to SOFR. Having a system that clearly demonstrates it can handle the hidden valuation and hedge accounting complexities means clients can focus on identifying risk and seizing the opportunities that are created during this significant market transition rather than just struggling through it,” commented Dr. Douglas Long, EVP of Product Strategy.

Please visit www.pasVal.com or www.ppllc.com for more details.

About Epsilon Technologies Group

Epsilon is a vibrant capital markets technology solutions and services firm serving small and medium-sized financial institutions such as regional banks, Government-Sponsored Enterprises, and Federal Home Loan Banks. The Group’s deep expertise embraces every aspect of software development, products, data, technologies, and consulting. Epsilon offers ETS and Principia Analytic System as licensed products, and various innovative bespoke solutions across a broad set of capital markets domains. Epsilon also offers a full range of consulting services, including implementation, advisory, analytics, risk management, accounting, and data modeling.